Kyrgyzstan is a Central Asian country that has been steadily gaining the interest of foreign investors and entrepreneurs in recent years. This is due to a number of factors: a favorable tax environment, relatively low business costs, a strategic location between China and the Eurasian Economic Union (EAEU), and steady economic growth. Company registration in Kyrgyzstan “turnkey” is an ideal solution for those who want to launch a business without unnecessary bureaucracy and with minimal time investment.
Why Start a company registration in Kyrgyzstan?
EAEU Membership
Kyrgyzstan is a member of the Eurasian Economic Union, which provides tariff-free access to markets in Russia, Kazakhstan, Armenia, and Belarus.
Low Taxes
The general taxation system is quite moderate, and for small businesses, simplified systems such as patent or unified tax regimes are available.
Open to Foreigners
Foreign citizens can freely register companies, own 100% of shares, and manage businesses without restrictions.
Low Operating Costs
Rent, wages, and utilities are significantly cheaper than in most CIS countries.
Simple Accounting
Financial reporting is straightforward and requires fewer resources.
Steps in Turnkey Company Registration
Turnkey registration means a full-service process is handled on your behalf—from consultation to receiving final documents and full registration.
- Consultation & Business Form Selection
The most popular forms are:
- LLC (OsOO) – Limited liability structure
- Sole Proprietorship (IE) – Simpler, but with full personal liability
At this stage you define:
- Company name (in Kyrgyz or Russian)
- Legal address
- Founders and directors
- Activity type (based on OKED codes)
- Document Preparation
Includes:
- Company charter
- Founders’ resolution
- Shareholder agreement (if multiple founders)
- Passport data of founders and director
- Registration with State Authorities
- Submit documents to the Ministry of Justice
- Obtain Certificate of Registration
- Register with the tax office
- Receive tax ID (INN), statistical code, and company seal
- Opening a Bank Account
You’ll need a corporate account in a Kyrgyz bank. Most banks offer online services and Russian-speaking support. - Online Cash Register & Digital Reporting
As of 2023, many sectors require online cash registers and electronic tax reporting. - Hiring Employees (if needed)
Employees can be officially registered via the Social Fund, and a payroll system can be set up. - Accounting and Legal Support
After registration, it’s important to set up proper bookkeeping to avoid penalties. Outsourced accounting services in Kyrgyzstan are affordable and efficient.
Timeframe & Costs
- Registration time: 3 to 7 business days if documents are in order
- Turnkey service cost: Typically $300–$700 depending on complexity, foreign founders, and added services (accounting, legal address, etc.)
Tax Regimes in Kyrgyzstan
Businesses can operate under the following systems:
- General Tax System (GTS)
- Simplified Tax System (STS)
- Patent-based system
- Contract-based taxation (rare)
- Fixed-income taxation (for specific sectors)
General Tax System (GTS)
For medium and large companies or those not eligible for simplification.
Key taxes include:
- Profit tax: 10%
- VAT: 12% (mandatory if turnover exceeds 30 million KGS/year)
- Sales tax (if not VAT-registered): 1% to 5%
- Personal income tax on wages: 10%
- Social contributions: ~17.25%
- Excise and ecological taxes for specific businesses
Simplified Tax System (STS)
A unified tax paid on gross revenue with no obligation to pay profit tax, VAT, or other complex taxes.
Eligibility:
- Available to LLCs and Sole Proprietors
- Not available to companies involved in financial services, excise goods, or mining
- Only for those not registered as VAT payers
Tax Rates under STS:
| Business Type | Tax Rate |
|---|---|
| Services & Production | 2–4% |
| Trade & Intermediation | 6% |
Note: Tax is based on gross revenue, not profit, which makes it simple but potentially less efficient for low-margin businesses.
Example Calculations:
- Design firm earning 2,000,000 KGS/year at 3% = 60,000 KGS tax
- Retail shop with 5,000,000 KGS/year at 6% = 300,000 KGS tax
Benefits of STS:
- Simple bookkeeping
- No need for full financial accounting
- Exemption from profit tax, VAT, and sales tax
- Quarterly tax reporting
Drawbacks of STS:
- No expense deductions — tax is based on total revenue
- Restricted to certain business types
- Must monitor turnover to avoid exceeding VAT threshold
Mandatory Payments Even Under STS
- Social contributions (~17.25%) for employees
- 10% income tax on salaries
- Environmental or license fees, where applicable
- Use of online cash register (required for most retail and service sectors)
FAQ about company registration
Can I register a company remotely?
Yes — with a power of attorney, registration is fully possible without physical presence. The same applies to company liquidation. Just contact us and we will help with registration.
Do I need Kyrgyz citizenship or a residence permit?
No — foreigners can act as founders and directors without needing residency.
What businesses are popular in Kyrgyzstan?
- IT and outsourcing (including 2% tax rate and HTP residency)
- Logistics and transportation
- Import/export within EAEU
- Agriculture
- Retail trade
Conclusion
Registering a company in Kyrgyzstan is one of the simplest and most effective ways to launch a business in the CIS region. With a favorable tax system, EAEU market access, and no restrictions for foreigners, Kyrgyzstan is increasingly attractive to entrepreneurs.
If you want to save time and avoid bureaucracy, turnkey company registration is your best option. A reliable partner will assist you at every step so you can focus on growing your business.